US tries to step in as Taliban, Baloch attacks force China to flee Pakistan

Washington: With a combination of militant attacks and economic instability forcing China to limit its activities in Pakistan, the United States (US) is trying to step into the vacuum with a big financial package. US President Joe Biden has come up with a proposal to double the economic support fund to cash-strapped Pakistan to $82 million for the fiscal year ending in 2024. This fund is intended to help Pakistan recover from the devastating floods that had engulfed around a third of the country last year. It is also intended to diversify Pakistan’s energy supply, and support activities to build emergency preparedness capabilities. “Assistance to Pakistan will expand private sector economic growth; strengthen democratic institutions; and advance gender equity and women’s empowerment,” the US State Department said in a statement.

Taliban, Baloch attacks across Pakistan scare China

Chinese citizens working on projects by the China government in Pakistan have faced a series of attacks by the Tehrik-i-Taliban Pakistan (TTP) - also known as the Pakistani Taliban - and Baloch groups. These attacks by the Tehrik-i-Taliban Pakistan (TTP) and Baloch freedom fighters have mainly focussed on projects related to the China-Pakistan Economic Corridor (CPEC) in the Balochistan and Khyber Pakhtunkhwa provinces of Pakistan. However, the port city of Karachi has also witnessed such attacks. These attacks have forced thousands of Chinese nationals to flee Pakistan. The China government has also temporarily closed its consular office in Islamabad. China’s decision to limit its presence in Pakistan also seems to have been influenced by Pakistan’s apparent inability to repay the already high Chinese debts.  

US proposes aid to Pakistan

The proposal by US President Joe Biden intends to give $82 million to Pakistan for fiscal 2024 which beginning in October, under the Economic Support Fund category. This support was $39 million in last year. Pakistan is also scheduled to receive $17 million under the international narcotics and law enforcement category and another $3.5 million under the international military education and training category. The US government has also proposed to give yet another amount of $32 million to Pakistan as part of the global health programme category by the US Agency for International Development (USAID).  

Pakistan struggling with IMF conditions 

Pakistan, which is battling a severe economic crisis, is in a race against time to implement harsh measures demanded by the International Monetary Fund (IMF) in order to kick start a stalled financial bailout package. This potential financial package from the IMF is crucial for Pakistan as the country reportedly has reserves barely enough to cover three weeks of imports of essential items. If Pakistan manages to fulfil all the conditions and bag the agreement with the IMF, it will lead to the completion of the ninth review of a $7 billion loan Extended Fund Facility programme. This IMF programme has been delayed since late 2022 due to a policy framework. The restart of this IMF programme will not only lead to the disbursement of the next tranche of 1.2 billion but will also unlock financial inflows from other countries such as China and Saudi Arabia. Read all the Latest News, Trending News,  Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.